Early Retirement Portfolio: 10 Stocks to Live Off Dividends

3. Bristol-Myers Squibb Company (NYSE:BMY)

Dividend Yield as of January 6: 4.38%

Bristol-Myers Squibb Company (NYSE:BMY) is a New York-based pharmaceutical industry company. It has achieved its success through innovative cancer treatments and strategic acquisitions. Its oncology portfolio features pioneering immunotherapy drugs that have significantly improved patient care. This solid market position generates substantial cash flow, which in turn supports returns for shareholders. The stock has surged by nearly 9.5% in the past 12 months.

In the third quarter of 2024, Bristol-Myers Squibb Company (NYSE:BMY) reported nearly $12 billion in revenue, reflecting an 8.5% increase compared to the same period last year. This strong performance was fueled by higher sales from its growing oncology portfolio and effective operational management. The results underscored the company’s ability to manage competitive challenges while achieving substantial revenue growth. By the end of the quarter, the company had around $8 billion in cash and cash equivalents.

Bristol-Myers Squibb Company (NYSE:BMY) is a reliable dividend payer, having raised its dividends for 16 consecutive years. Moreover, the company has never missed a dividend in the past 93 years, which makes it one of the best dividend stocks for an early retirement portfolio. With substantial cash reserves, the company has the ability to boost its payouts going forward. Over the past twelve months, it generated $15 billion in operating cash flow and $17.52 billion in levered free cash flow. Its quarterly dividend comes in at $0.62 per share for a dividend yield of 4.38%, as of January 6.

Bristol-Myers Squibb Company (NYSE:BMY) was a popular buy in Q3 2024, as 70 hedge funds tracked by Insider Monkey held investments in the company, up from 61 in the previous quarter. The stakes held by these hedge funds are worth more than $3.3 billion in total. Among these hedge funds, Pzena Investment Management was the company’s leading stakeholder in Q3.